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May 19, 2024

Goswami Infratech Proposes Generous Terms to Bondholders, Seeks Extension Amid Financial Adjustments

In a bid to navigate financial challenges smoothly, Goswami Infratech Pvt has unveiled a revised proposal aimed at accommodating bondholders while seeking an extension for a scheduled payment due in May. The New Delhi-based company, an investment arm within the esteemed Shapoorji Pallonji group led by billionaire Shapoor Mistry, has expressed its readiness to enhance the payment offer, signaling a commitment to meeting its financial obligations.

According to a letter addressed to the bond’s trustee and dated Saturday, Goswami Infratech is prepared to disburse 18 billion rupees ($216 million), which is 4 billion rupees more than the originally scheduled payment. This gesture underscores the company’s proactive approach to alleviating concerns among stakeholders. The proposed delayed payment is slated to be fulfilled no later than September 30, providing a pragmatic timeline for both parties involved.

The decision to sweeten the offer comes amidst reports that certain bondholders, representing a portion of the 143 billion rupee ($1.7 billion) note issued by Goswami Infratech last year, were contemplating seeking additional concessions in exchange for consenting to a deferment of the payment. This strategic move aligns with the company’s commitment to fostering constructive dialogue and mutually beneficial arrangements with its creditors.

Goswami Infratech’s diverse portfolio encompasses a range of real estate ventures including apartments, warehouses, parking spaces, and retail outlets. However, amid the evolving financial landscape, the company acknowledged potential challenges in meeting imminent payment deadlines, prompting the proposal for an extension to honor its commitments effectively.

Notably, a covenant stipulates that the Shapoorji Pallonji group must undertake the refinancing of certain debts linked to its primary investment vehicle, Sterling Investment Corp. The letter affirms that progress is underway in securing refinancing arrangements, indicating a concerted effort to bolster the group’s financial position and uphold its obligations.

While Goswami Infratech refrained from commenting on the matter outside of business hours on Saturday, the proposal has garnered attention from private credit investors, including prominent names such as Cerberus Capital Management LP, Varde Partners LP, and Davidson Kempner Capital Management LP. The diverse array of stakeholders underscores the significance of reaching an amicable resolution that safeguards the interests of all parties involved.

Furthermore, the involvement of reputed institutions such as Canyon Capital, Edelweiss, Deutsche Bank, and Standard Chartered Bank underscores the broader implications of Goswami Infratech’s financial maneuvers within the investment landscape.

In essence, Goswami Infratech’s proactive stance in enhancing its offer to bondholders reflects a commitment to financial prudence and stakeholder engagement. By seeking an extension while simultaneously improving the terms of the payment, the company endeavors to navigate prevailing challenges with resilience and foresight, ultimately paving the way for sustained growth and stability in its operations.

Jhumpa Lahiri

Jhumpa Lahiri

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